WASHINGTON - Federal Reserve officials said yesterday they will launch a much-awaited program in June to bolster commercial real-estate lending.
And, to help make the program more attractive to investors, the Fed will provide longer, five-year loans.
Investors would use the money to buy securities backed by commercial real-estate loans. The goal is to boost the availability of these loans, help prevent defaults on such commercial properties as office parks and malls, and facilitate the sale of distressed properties, the Fed said.
The new commercial real-estate component is part of a broader program rolled out in March that aims to jump-start lending to consumers and small businesses. The program is called the Term Asset-Backed Securities Loan Facility.
It figures prominently in efforts by the Fed and the Obama administration to ease credit stresses and stabilize the financial system, critical elements needed to lift the country out of recession.
